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Judge Rejects SEC-Ripple Settlement: What’s Next for XRP in the US?

In a significant turn of events, Judge Analisa Torres has rejected the $50 million settlement request from Ripple and the SEC.

This denial cites procedural errors in the submission, indicating that the legal process must be followed more strictly.

While this setback raises questions about XRP’s status, Ripple's Chief Legal Officer Stuart Alderoty reassured stakeholders that the previous ruling declaring XRP as not a security still stands.

He emphasized that the rejection will not alter Ripple's earnings and that the agreement on XRP sales remains valid.

Despite the setback, the market shows resilience, with XRP withdrawals from exchanges indicating continued confidence from investors.

Legal experts expect both parties to promptly refile their motion for settlement, although responses may take weeks.

Ripple's ongoing legal battle has incurred costs exceeding $250 million, highlighting the financial stakes involved.

As the case moves forward, the implications for the wider cryptocurrency sector are noteworthy, particularly regarding regulatory clarity.

The relationship between Ripple and the SEC will be closely scrutinized, especially in light of the procedural hurdles that remain.

Overall, the rejection by the judge signifies that the resolution of this case could take several more months before a definitive outcome is reached.